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Information Content of Business Methods Patents
Author(s) -
Boscaljon Brian,
Filbeck Greg,
Smaby Tim
Publication year - 2006
Publication title -
financial review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.621
H-Index - 47
eISSN - 1540-6288
pISSN - 0732-8516
DOI - 10.1111/j.1540-6288.2006.00148.x
Subject(s) - business , point (geometry) , value (mathematics) , perception , market value , stock market , industrial organization , commerce , financial economics , marketing , accounting , economics , paleontology , geometry , mathematics , horse , machine learning , neuroscience , computer science , biology
We examine the market reaction to business method patents granted to publicly traded firms. Our findings suggest that the State Street decision represents a turning point not only for the growth in the number of business method patent filings, but also in the market's awareness and perception of value creation for the filing firms. The granting of a business method patent evokes a positive average stock price reaction, especially in the post‐ State Street period. Cross‐sectional differences in abnormal returns depend on the type of patent granted. The market reaction also differs based on industry classification.